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Gatekeeper Reports 6th Consecutive Quarter of Operating Profit while Increasing Investment in AI Development

Abbotsford, BC – July 26, 2021 – Gatekeeper Systems Inc. (‘Gatekeeper’ or the ‘Company’) (TSX-V: GSI) (OTC: GKPRF) (FSE: 1GK) a video and data solutions provider for public transportation and smart cities, reports its financial results for the three and nine months ended May 31, 2021. During the quarter, the Company achieved its sixth consecutive quarter of operating profit while investing approximately $0.5 million in AI development pertaining to the Company’s recently launched Automatic Lane Enforcement (ALE) product offering.

ALE uses video analytics and Artificial Intelligence to identify instances in which vehicles are violating transit lane traffic laws or passing a streetcar when passengers are boarding or deboarding. ALE records the video evidence, captures the vehicle license plate, and prepares the instance for review and ticketing using the Company’s proprietary Traffic Infraction Management System (TIMS) software. The Company is currently conducting live ALE transit trials.

Business Highlights

  • Launched AI-enabled Automatic Lane Enforcement (ALE) solution for traffic lane violations;
  • Developed CLARITY, an industry-first integrated video and school bus operating platform;
  • Launched a new Software-as-a-Service (SaaS) based video management solution designed to store and manage school bus video data and announced first customer deployment;
  • Announced contracts with school districts in Louisiana, Illinois and Alberta;
  • Announced pilot-project installations for Toronto Student Transportation Group and for the Canadian Federal, Provincial and Territorial school bus safety initiative.

Financial Highlights

  • Revenue for the nine months ended May 31, 2021 was $12,088,139 which compares to $12,584,503 for the same period in the previous year;
  • Revenue for the three months ended May 31, 2021 was $3,831,373 which compares to $5,653,462 for the same period in the previous year;
  • Gross profit for the three and nine months ended May 31, 2021 was $1,853,029 and $5,224,335 respectively, and represents 48% and 43% of revenues respectively;
  • Operating profit for the three and nine months ended May 31, 2021 was $144,081 and $489,492 respectively;
  • Cash flow generated from operating activities during the nine-month period was $4,856,090 and at May 31, 2021 the Company had working capital of $8,738,973, no borrowed-money debt, and approximately 90.3 million shares outstanding.

Management Commentary

“In Fiscal Q3 2021 we maintained operating profitability while re-investing in our business to develop new product lines which we expect will deliver significant future revenues,” commented Doug Dyment, President and CEO. “Our backlog and sales pipeline are strong in both the transit and school markets, and in Q3 most of our business was repeat orders from existing customers through our recurring-customer business model. We are strategically investing in our AI and video analytics capabilities to develop smart city products such as ALE, which we recently launched as a solution to help cities improve passenger safety and alleviate traffic congestion as we emerge from the pandemic.”

Financial Summary

Full details of the financial reports and operating results for the third quarter ended May 31, 2021 are described in the Company’s consolidated financial statements with accompanying notes and related Management’s Discussion and Analysis, available on SEDAR at www.sedar.com.

About Gatekeeper Systems Inc.

Gatekeeper is a leading provider of intelligent video and data solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. The Company uses AI, video analytics, thermal cameras, and mobile data collectors to inter-connect public transit assets as part of intelligent transportation systems in a Smart City ecosystem. The Company’s Platform-as-a-Service (PaaS) business model is an enabling transformation to a video and data solutions provider for intelligent transit and Smart Cities.

www.gatekeeper-systems.com

Contact Information:

Douglas Dyment

President & CEO

ddyment@gatekeeper-systems.com

(604) 864-6187

 

Cautionary Note Regarding Forward-Looking Statements: Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements. As a result, we cannot guarantee that any forward-looking statement will materialize, and readers are cautioned not to place undue reliance on these forward-looking statements. For more exhaustive information on these risks and uncertainties, the reader should refer to the risk factors described in the management’s discussion and analysis for the period ended May 31, 2021. The forward-looking statements contained in this press release represent our expectations as of the date hereof. We disclaim any intention and assume no obligation to update or revise any forward-looking statements. Forward-looking statements are presented for the purpose of providing information about management’s current expectations and plans and allowing investors and others to obtain a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

TRANSIT

 

Bus
Rail
SCHOOL BUS

 

FIRST RESPONDERS

 

Police

Ambulance
TAXI

TRANSPORT

 
SERVICE & MAINTENANCE

TRAINING & TUTORIALS

 

G4 Viewer Plus
G4 Viewer Plus – G4 Enterprise – Server Client
MaxLOCATE
LEGACY SUPPORT

 
PRESS & MEDIA

 

Press Releases
Media
CORPORATE

 

Why Gatekeeper?
Stock Information
Financial Reports
Transfer Agent
TEAM

 
INTERIOR CAMERAS

 

TXMW12 IP v3 Camera
MD11 AHD Day / Night Camera
MX12 Camera
S31 AHD 720p Camera
S31 IP v3 Camera

S32 IP v3 Camera

S32 AHD 1080p Camera
S370 Camera
TI252 IP v3 1080p Camera
TW202 IP v3 1080p Camera

CI960 IP v3 Camera

WA11 Wide Angle Camera
Video Display Mirror
Passenger Counting Sensor (PaC30)
G4 VISION

 

CLARITY™

 

EXTERIOR CAMERAS

 

Student Protector Camera System (SP25)
Rear Vision System
TX242 IP v3 1080p Camera
TXM12 AHD Camera
TXM12 IP v3 Camera
TXM11 AHD Camera
TXM700 Camera

360° Surround Vision System (SV12)

360° Surround Vision System (SV12 v3)

Video Display Mirror
ALE™ - AUTOMATED LANE ENFORCEMENT

 

SCHOOL BUS STUDENT PROTECTOR

 
DVR RECORDERS

 

Y35 HD v3
Y35 v3

Y58 v3

508HD4a
Y724
Y816-R
WIRELESS

 

Health Check
Access Points
Mobile Wireless Module
Mobile Wifi System – School Bus
Yard Guard
ITSS™ - INTELLIGENT TEMPERATURE SENSING SYSTEM